USD/JPY Price Analysis: Stays pressured towards 136.90 key support

USD/JPY bounces off intraday low but remains in the red for the third consecutive day.
Three-week-old descending trend line restricts immediate upside, downward-sloping support line from late September lures bears.
Convergence of 100-DMA, 50% Fibonacci retracement level appears as the key.

Anil Panchal FXStreet

USD/JPY prints mild losses around 138.70 during the three-day losing streak amid early Wednesday. Even so, the quote bounces off intraday low of late to test the bears.

The yen pair’s latest losses could be linked to the failure to cross the key resistance line stretched from early November, around 139.20 by the press time. Also likely to favor the USD/JPY sellers are the bearish MACD signals and the downbeat RSI.

It’s worth noting that the quote’s further declines appear limited as the RSI (14) line is near the oversold territory. As a result, a descending support line from late September, near 136.90, appears crucial for USD/JPY bears to watch

In a case where the Yen pair remains bearish past 136.90, the odds of witnessing a south-run towards the early August top surrounding 135.60 and then to August month’s low near 130.40, can’t be ruled out.

Alternatively, a clear upside break of the aforementioned resistance line isn’t an open welcome for the USD/JPY buyers as a convergence of the 100-DMA and the 50% Fibonacci retracement level of the pair’s August-October upside will challenge the further advances near 141.25.

To sum up, USD/JPY is likely to decline further but the room towards the south is limited.

USD/JPY: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	138.66
Today Daily Change	-0.13
Today Daily Change %	-0.09%
Today daily open	138.79

Trends
Daily SMA20	141.91
Daily SMA50	144.58
Daily SMA100	141.21
Daily SMA200	134.2

Levels
Previous Daily High	139.35
Previous Daily Low	137.87
Previous Weekly High	142.25
Previous Weekly Low	138.05
Previous Monthly High	151.94
Previous Monthly Low	143.53
Daily Fibonacci 38.2%	138.43
Daily Fibonacci 61.8%	138.79
Daily Pivot Point S1	137.99
Daily Pivot Point S2	137.18
Daily Pivot Point S3	136.5
Daily Pivot Point R1	139.47
Daily Pivot Point R2	140.16
Daily Pivot Point R3	140.96

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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